Direct sales is a tool-driven business. Kinda.

It’s actually a people-driven business. The tools just help the people share the message consistently and confidently.

As you can imagine, much of my career working on the corporate side for direct sales companies has been spent focused on all kinds of tools. Magazines, mail-outs, emails, websites, social media, video, flyers, etc. I’ve done ‘em all.

Sure, I’ve launched some really bad tools. But I’ve also watched some great tools get so misused and misunderstood that they never get the credit they deserve.

If you’re a direct seller, you need to read this article I recently posted at Jen Fong’s blog, titled “6 Reasons Your Online Tools Don’t Work (and How to Fix Them)“. I go into great detail as to the reasons I typically see a distributor failing at using their tools. The great news is you can easily fix it.

Read the post now, and subscribe to Jen’s blog while you’re at it. It’s one of the best for direct sellers.

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Scott Stratten

There. I said it. This is what most people outside of network marketing (and even some inside) think of the industry.

The stigma that the industry has taken huge strides in disproving and changing over the past couple decades is, well, still there. Maybe not to the tune of what we saw in the ’80s, but network marketing still has a horrible reputation.

And this battle is showcased beautifully in an exchange recently from Mr. UnMarketing himself, Scott Stratten and a good friend of mine and social media expert for the direct sales industry, Jen Fong.

Jen Fong

You can get a great summary of the conversation at Dave van de Walle’s Area 224 blog. Essentially, Scott asks a question on Facebook where he likens an hour long presentation from a network marketer to being kicked in the ear all day by a horse. Then, Jen jumps in and simply represents with a simple “Why you hatin’?” reply.

Now, I know what you’re thinking. “Brett, don’t you think you may be a little biased?” Given I’ve spent the last nine years working with direct sellers and at the corporate headquarters of two direct sales companies, uh, yeah. Most likely.

But I may not be biased in the way you assume. Sure, I believe in the network marketing model. But I’m also exposed to it more than most people (even network marketers themselves). I hear field reps make some of the weirdest claims. I deal with slimy, self-centered reps on a regular basis whose very presence can make me puke a little in my mouth. I also see the industry continually take two steps forward only to be followed by one step back.

On top of that, I actually signed up as a rep with a fast-growing upstart while in college, only to see it close its doors within about 18 months. Seems the founder and CEO was lying about the cash flow and all the computers got picked up due to default. Go figure.

So I have to accept that Scott’s perception is probably the common perception. It’s limited and, frankly, inaccurate, but it is his perception, and that of many others. And he probably has some telling personal experiences that back up every opinion he has.

And yet, I still love this industry.

There are Too Many Good Stories in Network Marketing

You see, I have personal experiences, too. I have witnessed some amazing things during my tenure in the network marketing industry. I’ve met people (20 at a minimum) who have used network marketing to retire more than $100,000 in debt. And for every one of them, I know 100 who’ve done the same for $10,000 in debt. That’s powerfully hopeful.

And while Scott claims he can show me 100 broke MLMers making empty promises for every “good” MLMer (which is a challenge I’d LOVE to take on, though I don’t know what qualifies as a “good” MLMer),  I can  show you thousands and thousands of MLMers who once were broke with their “traditional” jobs and no longer are thanks to network marketing. People who are able to earn an extra $500 a month selling products they love. People who consistently earn six figures by building and developing teams to sell the products. People who are millionaires.

People who were teachers, pastors, coaches, firemen, IT professionals, and just about everything else before that. Many living check to check, punching the clock at jobs that sucked the life out of them.

Then there’s the personal development side of it all, which, to me, is the most impressive feature of network marketing. I’ve watched selfish, immature men and women become true leaders with the purest of motives. I’ve seen people who were scratching for every dime they could get their fingers on become some of the most giving, mission-minded people I’ve ever met in my life.

And we’re not even talking about what some of the products have done for people.

It’s Still a Common Perception

And with all that said, I still see where Scott is coming from. I know the people he is talking about. I am around them more than I want to be. And it makes my skin crawl when I’m around them.

But it’s not enough to make me stamp a black-eye on the entire industry. Because I’ve seen the value network marketers bring. I’ve seen the true riches they enjoy. I know the “good” MLMers. There are lots of ‘em.

And let’s get real here: it’s not just a network marketing thing. There are sleazy, self-serving, lying SOBs in every business, every group. From social media gurus to churches to environmentalists to whatever, there are bad eggs. And companies in any industry make mistakes, and have speckled pasts. Not just Amway.

Cuz that’s how people are. Some do it right, and some do it wrong. And lots of times we do it wrong before we do right.

So, Mr. Stratten, I’m sorry you’ve obviously had some horrible experiences with MLMers. I don’t dismiss that one bit. But I can tell you that’s not how every experience is.

I can tell you that for every “network marketing devil,” I know of 100 network marketing godsends.

Where do you stand on this? Have your experiences with network marketers been devilish or angelic?

Update: Not sure how I missed this post from Jen, but it’s just additional info on the “rest of the story.”

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I guess every industry likes to think it’s extremely unique in how it’s run. I’m convinced, though, that those of us who work on the corporate side of a direct sales company could make a strong case for having very distinct and opinionated ideas about works and what doesn’t. Even illogical ideas.

That’s why I think we could learn a lot from Jimmy Carter.

I’ve already made my case that what we really do is facilitate evangelism. And that the direct sellers is the greatest feature of direct sales. And that direct sales isn’t an online business.

Now, thanks to an opportunity to guest post on Jen Fong’s amazing blog on social media for direct sellers, I’ve had the chance to vet out my thoughts on how we need to see ourselves.

Go read it now: What Jimmy Carter Knows About Running a Direct Sales Company. I’d love your input in the comments there.

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Stone at Network Marketing Now wrote a post today that is ludicrous. You should give it a quick read and then come back and finish up.

To be fair, Stone isn’t all wrong. His main point is you need a daily method of operation. A consistent drip that, over time, leads to an overflow. It’s an essential system that you’ll find all successful networkers have in common.

But the tactics he lists are missing the target completely:

• Update Facebook account?
• Post ten new ads in classified sites?
• Write and publish 5 articles online?
• Evaluate website statistics?

Here’s a quick lesson for anyone trying to reinvent the wheel in network marketing: the network that pays is made up of people. Not “likes” or retweets or hits or visits. But real, breathing people.

Network Marketing is Not a Web-Based Business

By just reading Stone’s list above, I would swear that I need to be a web guru or a journalist to make it in direct sales. Nothing could be further from the truth. Remember that YOU are the biggest feature of network marketing, and that connections with people is what matters. Obviously, if Facebook helps you do that, then go for it. But if hooking up for an hour at Starbucks accomplishes that, too, then be sure you’re adding that to your list.

Yes, there are lots of great web tools you can use to build your network marketing business. And be sure you read some other posts on Stone’s blog; it’s good (I subscribe to it). My intent is not to pick on his take; I’m sure it’s worked for him. But if you’re looking for a business where you can sit in your recliner, laptop in place, pecking away and then call it a day, you will be disappointed.

Stop using the web as a shortcut; start using it as a way to amplify introductions to YOU.

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I guess the stars were simply aligned. The last week of January this year (yes, I know I’m way behind here), three different network marketers on three different occasions asked me how they should be using social media to help grow their personal business.

You have to understand this is the equivalent of the high lob in a game of ping-pong for me. You know, when your opponent just serves one up, slow and high. Your eyes get huge and you start licking your chops, knowing you are about to bring the thunder.

The first time around, I gave my friend a few tips, asked a few questions, and told him I’d follow up with him. Then I tweeted out the question to my follower, hoping I’d get some good responses from other direct sellers.

I was shocked when the main response I got was from my web buddy and pharma marketing wizard Steve Woodruff, who disappointingly, and accurately, put it this way:

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bdunc1: Just had an MLMer ask what the top thing they should be doing with social media is? Whaddya think? 11:27am, Jan 24 from HootSuite

swoodruff: @bdunc1 My advice: stay away. 11:30am, Jan 24 from TweetDeck

bdunc1: @swoodruff From MLM altogether, or MLMers should stay away from social media? 12:12pm, Jan 24 from HootSuite

swoodruff: @bdunc1 I think if MLMers are tempted to expand their empire using social media, it’s a better choice for them (& all) to just stay away.

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Network marketers already have a bad reputation. However, social media and network marketing should go together like peanut butter and jelly. Sadly, Steve is right. Most network marketers that I follow are completely repeating the sins of the father.

So with that disappointing crowd-sourcing experiment behind me, I’ve since spent a lot of time thinking about how to right the wrongs of what many direct sellers are doing online today.

How Network Marketers Should Use Social Media

1. Use social media for reasons other than business.

I think what drives me crazier than anything is when network marketers ask me how to get on Facebook. When I ask why they wanna be on there, they tell me to help build their business. People, just like Steve tweeted, stay away from social media if this is your only intention. It won’t work for you, and your time will be better spent doing, well, something else. However, if you already have a Facebook account for just connecting with friends and fam, then there’s ways you can leverage it.

2. Make connections, not contacts.

Network marketing that works is based on leveraging connections. The good ones know how to make lots of contacts. The great ones make lots of connections. Same thing goes for social media. The good news for network marketers is that all the training you’ve received for your business applies directly to how to best use this new medium. Ask questions, make comments and “speak to their listening.” Give people reasons to pay attention to you, rather than ignore you.

3. Drop hints, not bombs.

No one logs on to Facebook so they can read “DON’T MISS TONIGHT’S ONE-IN-A-LIFETIME CONFERENCE CALL” in all caps. Stop using social media to accomplish your goals, and rather concentrate on ways to make your connections glad they’re connected to you. And as you do, and without forgetting points #1 and #2 here, drop hints about your business. Instead of shouting that there’s still space at your mixer tonight, mention that you’re tidying up the house before eight ladies come over for a fun makeover. Rather than get all spammy with your “Brand X helped me lose 10 pounds – ask me how,” just mention that you’re chugging your Brand X shake to start a big day. Positioning is everything. Over time, people will at the least be aware of what you do, and when and if they’re interested in it, they’ll ask. (Especially if you’ve done you’re homework on making connections, cuz you’ll be so approachable)

4. Log off and go old school.

I’ve been working on the corporate side of direct sales since 2002, and I have never, EVER met a long-term successful network marketer who does it all online. If you’ve never read my mantra on the greatest feature of direct sales, read it now. The point here is that social media is a means to an end only. In other words, it should help introduce YOU to more people; it shouldn’t replace YOU. The “direct” part of “direct selling” is the key. So leave the house, get off the computer and enjoy being a human.

What would you add? What works for you?

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Dave Sattler of Scentsy donated an excellent guest post over at Jen Fong’s blog this week that got me thinking. The entire post is a must-read for anyone in direct sales, because I think it nails the sentiments that most of us handling web marketing on the corporate side of a direct sales company feel and want to express.

But what really stuck out with me is his claim that Scentsy has truly grasped the idea of a democratized brand. In Dave’s words,

We believe that the brand perception is best carried forth by our evangelists – whether consultant or a customer. This new marketing relationship prescribes certain expectations for the company and the evangelists. In short it’s our job to produce a relevant product, amazing brand experience, and help you share the brand, and it’s your job to influence the relevancy of the product and carry the brand promise through to the end-user.

Wow! What a succinctly great way to capture the roles and responsiblities of both corporate and the independent rep.

From coast to coast, I would daresay any struggling direct sales company is screwing up at least a part of this equation. What’s been your experience?

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I came across this interesting list on Direct Selling News listing out the 65 companies within the direct selling industry who have crossed the $100 million line. It’s a great resource to give you a frame of reference on the industry.

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My thoughts lately have really been centered around marketing in today’s direct sales environment. As soon as I thought I was brewing some original thoughts, I realized most of it was something I’ve already thought, and believed in, before. So I figured I would just link back to those posts as a great reminder to us all, with one addition: What do you think is the key to marketing and communications in today’s direct selling world?

1. The Greatest Feature of Direct Sales (April 15, 2009): If your answer isn’t the direct seller, then you’re wrong. No matter how the web continues to evolve our communication preferences, and no matter how amazing the product or comp plan is, the direct seller is the true differentiator.
2. The Illusion of the Ground Floor (March 18, 2009): You don’t have to be the first to succeed. In fact, it’s probably smart if you aren’t. What you’re looking for is momentum. And that never happens at the ground floor.
3. Overcoming the Four Fears of Starting a Business (February 17, 2009): This list and info should be in every direct sellers back pocket. You have an answer for the fears.
4. Facilitating Evangelism (January 20, 2007): The corporate side of any direct sales company has but one function: facilitate evangelism. Fan the flame of your brand and of the work your independent reps are doing. I’ve even heard it simplified to “ship product and mail checks.” I’m not sure it’s that simple, but there are definitely things you can do and control, and things you can’t. The sooner you realize you are a facilitator, the more successful, and sane, you will be.

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OK, people. I need some input here. As some of you know, I have a great deal of background working for direct sales companies on the corporate side. I’ve seen A LOT of changes, obstacles, stumbling and guessing when it comes to direct selling companies and distributors using the Internet to improve their business. (FYI, for those not in the know, direct sales is the same as multi-level marketing, network marketing and party plan).

So here’s what I want to know: how are you (direct seller) using the web that makes a direct positive impact on your business?

What’s working? What’s not? What did you think would work but hasn’t? What has made all the difference for you? How are you using social media like Facebook and Twitter? What mistakes have you learned from?

If you’re not a direct seller, it’s OK to guess. From your point of view and impression of direct sales, how do you think direct sellers could be using the web to work better and smarter, and sell more product?

FYI, I plan to use some comments in an upcoming blog post, so please let me know if you DON’T want your comment considered.

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The greatest feature, advantage and benefit of any direct sales company is the direct seller.

It’s not the product. You can always find a similar product on a retail shelf or website somewhere.

It’s not the compensation plan. There are tons of ways to make tons of money.

It’s not the gigantic advertising budgets. That just doesn’t work for direct sales companies, unless your Avon or Amway (and even then it might not work).

It’s not the web presence. Everything has a web presence, so what’s special about that?

It’s not the folks at the corporate office. Sure, they’re important, but at the most they can only help introduce an interested prospect to an independent distributor.

No, the most important feature is the direct seller. The person talking about a product and an opportunity to another person with similar likes and dislikes. The independent rep with the drive and dream to take care of their individual market.

As a direct seller, your personal touch and attention is what sets you apart. Are you utilizing it enough?

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